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Is Broadcom Inc. (AVGO) the Top AI Semiconductor Stock Pick of Billionaire Steve Cohen?

Insider Monkey recently analyzed billionaire Steve Cohen’s latest portfolio to see some of his top AI stock picks.

Since Broadcom Inc. (NASDAQ:AVGO) ranks 2nd in our list of the 10 Best AI Stock Picks of Billionaire Steve Cohen, the stock deserves a detailed look.

Billionaire Steve Cohen is one of the few hedge fund managers who almost always dazzles with his outperformance and prescient bets. Cohen, who also owns The New York Mets, founded SAC Capital back in 1992, and since then through 2009 lost money only once. A Bloomberg report earlier this year said that Point72 Asset Management has been able to raise so much cash recently that it’s starting to decline external money. The fund has reportedly raised about about $12.8 billion since 2020.

Point72’s main fund returned about 11% in 2023, and 12% in the previous year.

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Billionaire Steve Cohen’s Point72 Asset Management runs a highly diversified portfolio. As of the end of the March quarter, the portfolio’s net worth was over $41.2 billion, with tech stocks accounting for 17% of the total portfolio.

Unlike long-term value investors like Warren Buffett and Seth Klarman, Cohen moves with speed and adapts quickly. He’s been like this for decades. When he was in Wharton School of the University of Pennsylvania, he would often skip classes to watch stock movements at a local brokerage. He took pride in predicting stock movements based on their direction.

Steven Cohen
Steven Cohen

Broadcom Inc. (NASDAQ:AVGO)

Steve Cohen's Q1'2024 Stake: $623,426,475

Broadcom Inc. (NASDAQ:AVGO)  is one of the best AI stock picks of billionaire Steve Cohen. Point72 Asset Management bought a new stake in the semiconductor by in the March quarter, worth about $623 million.

Citi analyst Christopher Danley recently said in a note that he remains "wildly bullish" on semiconductor stocks. The analyst reiterated his top picks in the industry, and Broadcom Inc. (NASDAQ:AVGO) was one of them.

Insider Monkey's database of 919 hedge funds shows that 115 hedge funds reported owning stakes in Broadcom Inc. (NASDAQ:AVGO)  as of the end of March, up from 91 hedge funds in the previous quarter. This shows a clear increase in hedge fund sentiment for Broadcom Inc. (NASDAQ:AVGO).

Carillon Eagle Growth & Income Fund stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its fourth quarter 2023 investor letter:

“Broadcom Inc. (NASDAQ:AVGO) traded higher after closing on its acquisition of VMware. The company also announced earnings that were relatively in line with estimates with some benefit of better operating expenses. The stock appears to be one of the first real beneficiaries of generative artificial intelligence (AI) with meaningful revenue expected to show up in 2024.”

 

Broadcom Inc. (NASDAQ:AVGO) ranks 2nd in the list of the 10 Best AI Stock Picks of Billionaire Steve Cohen.

 

Click to see the complete list of 10 Best AI Stock Picks of Billionaire Steve Cohen.

If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. Is Broadcom Inc. (NASDAQ:AVGO) the Top AI Semiconductor Stock Pick of Billionaire Steve Cohen? was originally published on Insider Monkey